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Toyota stops production at several Japanese plants due to system malfunction.

Toyota Suspends Operations⁣ at Assembly Plants in⁣ Japan

By Satoshi Sugiyama

TOKYO (Reuters) – Toyota Motor Corp has temporarily halted operations at a dozen assembly plants in Japan due to a malfunction with its‍ production system, the automaker announced. This⁣ unexpected issue is likely to bring almost⁢ all of ⁤its⁣ domestic output to a halt.

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The company is‌ currently investigating the cause of the problem, and a spokesperson stated that it⁣ is “likely not⁢ due to ‍a cyberattack.” However, this malfunction has prevented Toyota from ordering necessary components for production.

While the exact extent of the lost output is unclear, operations⁢ have been suspended at all​ of Toyota’s domestic assembly plants, with the exception of ​two plants: the Miyata plant in Fukuoka and a Kyoto plant run by Toyota ⁣unit Daihatsu. These 14⁣ plants in Japan account for approximately one-third of Toyota’s global production,​ making it a significant setback‌ for the world’s largest automaker.

The suspension of operations began on Tuesday ⁣morning, ‌and it remains uncertain whether they‌ can be resumed for the afternoon shift, according to the spokesperson. This incident is⁤ reminiscent⁤ of last year when Toyota faced a cyberattack that caused a one-day disruption and a loss of around⁣ 13,000 cars.

Toyota’s just-in-time inventory management system, which aims to reduce costs, also makes the company vulnerable to ‍disruptions in ‌the logistics chain.‌ This recent outage is ‌another blow to ‍corporate Japan, which ⁤has already been dealing with other ​challenges.

Shares of Toyota were down 0.3% at 2,429 yen in early‍ Tokyo trade.

(Reporting by Satoshi Sugiyama;⁣ additional reporting by Miyoung Kim; Editing by Muralikumar Anantharaman and Christopher Cushing)

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